By Harsh Chauhan
Publication Date: 2025-12-04 16:35:00
Can the smaller chipmaker continue to outperform its more famous peer in the new year?
Longtime rivals Nvidia (NVDA +2.17%) and Advanced Micro Devices (AMD 0.27%) saw their fortunes vary in the artificial intelligence (AI) chip market over the past three years.
Nvidia’s early move into this market with its data center graphics cards, which enabled OpenAI to train ChatGPT in 2022, paved the way for remarkable growth in its top and bottom lines. What’s worth noting is that Nvidia continues to reap the benefits of its first-mover advantage in the AI chip space, as evidenced by its latest quarterly results.
AMD, however, was late to the AI scene. It lags behind Nvidia in this market despite trying to close in on its bigger rival for the past three years. This explains why AMD stock’s three-year gains of 183% pale in comparison to Nvidia’s 963% increase. But what’s worth noting is that AMD has outperformed Nvidia in 2025, clocking an 82% jump in its stock price as compared to Nvidia’s 34% appreciation.
Can AMD sustain this momentum in 2026 and continue to outperform Nvidia? Let’s find out.
Image source: AMD.
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